How to Form an LLC in North Dakota

For U.S. Citizens and Worldwide Entrepreneurs

You probably did not consider North Dakota in your list of business hubs in America. Well, it’s time you did.

It is perhaps one of the few states in America where the economy is strong, taxes are favorable, and business regulations are simple. It makes great sense for entrepreneurs to consider forming an LLC in North Dakota, especially those looking for lower operating costs and less competition.

This is a one-stop solution to forming an LLC in North Dakota that breaks down the entire process for U.S. based and global entrepreneurs who want to enter the U.S. market.

Why Should You Form an LLC in North Dakota?

1. Business-Friendly Tax Environment

For small and mid-sized businesses, North Dakota provides one of the most favorable tax climates. There is no franchise tax levied on LLC’s, meaning your business will not be taxed for existing as it is in some states.

In addition:

• Corporate income tax rates are tiered and relatively low, ranging from 1.41% to 4.31%.
• Personal income tax rates are also among the lowest in the country.
• The state sales tax has a base of 5%. Local jurisdictions can add an additional 3%. All and all, it remains competitive.

This structure enables companies to invest more of their revenues into business expansion.

2. Low Cost of Formation and Operation

North Dakota’s LLCs are easy and cheap to set up and operate:

• Compared to more popular states for business such as California or Massachusetts, North Dakota has much lower LLC formation fees.
• Renting office space or employing staff is below the national average, making the cost of living and doing business lower than the average.
• Due to the strong energy infrastructure, the state has lower than average energy and utility expenses.

These inexpensive expenses are a boon for small and new businesses and are likely to increase their long-term profit margins.

3. Strong and Resilient Economic Sectors

The North Dakota economy is well-rounded due to a number of flourishing sectors such as:

• Wind and coal energy along with oil and gas
• Agriculture and food industries
• IT and software
• Transportation, logistics, and warehousing
• Teaching and government jobs

Due to this economic diversity, businesses from other sectors have access to many opportunities and local collaborators in North Dakota.

4. Suitable For Out Of Country Business Owners

An overlooked benefit of North Dakota is that it accepts Foreign Direct Investments. Foreigners can own an LLC and manage it from outside the country, provided they have a Registered Agent in North Dakota who has a physical address in the state.

There is no requirement to:

• Be a US citizen
• Reside in North Dakota
• Hold a US visa

📌 Non-resident Founders can avail Registered Agent and compliance services through Bizstartz.

✅ Form an LLC in North Dakota

Step 1: Create a Unique Name For Your LLC

Constructing an identity brand starts with picking a name. For North Dakota, the name must comply with the following:

• Be distinguishable from other business names registered with the Secretary of State.
• Have the designation “Limited Liability Company,” “LLC,” or “L.L.C.” at the end.
• Avoid restricted terms “Bank,” “Insurance,” “Trust,” or “University” unless appropriately licensed.

💡 Suggestions:

• Check name availability with the North Dakota Business Search Tool.
• You may also find it helpful to select a brandable and simple name that resonates with your target demographics.

📝 Optional: If you wish to reserve your business name for 12 months, you can submit Name Reservation Application (SFN 13001) along with a $10 fee.

Step 2: Appoint a Registered Agent

North Dakota mandates that all LLCs have a Registered Agent. This person, or business entity will receive all legal documents, and state correspondence on behalf of your LLC.

Your Registered Agent must:

• Be a North Dakota resident or a business entity authorized to conduct business within the state.
• Have an actual address (not a P.O. Box) located in North Dakota.
• Be reachable during standard business hours.

🌍 For International Founders:

If you are not located in the United States, you will need to engage a commercial Registered Agent.

📌 For those outside the United States, Bizstartz offers affordable and dependable registered agent services for entrepreneurs needing local representation.

Step 3: File Articles of Organization

This is the legal document that you need to create in order to have your LLC registered in the state.

📄 To set up an LLC in North Dakota, you must complete the “Articles of Organization” (SFN 58701) and submit it to the Secretary of State.

The information required includes:

• LLC name
• Registered agent’s name and address
• Principal business address
• Organizer’s details
• Purpose of the business (optional but better to have)

💻 Filing Method:

• Only Online on the ND FirstStop Portal

💰 Filing Fee:

• $135 (non-refundable)

⏱️ Processing Time:

• 3-5 business days, but could take longer during busy season

🧾 You will receive a certificate of organization after processing which means the state acknowledges your LLC is formed.

Step 4: Draft an Operating Agreement

While it is not a law in North Dakota to have an Operating Agreement, it is advisable to have one if your LLC has more than one member.

It explains:

• Distribution of profits and losses
• Voting rights and responsibilities
• Roles of each member/manager
• Dispute resolution
• Procedures for member death, exit, or bankruptcy

📌 Having a defined Operating Agreement allows you to:

• Maintain limited liability legal protection
• Reduce the risk of internal disputes
• Appears more credible to financial institutions

🛠️ Bizstartz has customizable templates of Operating Agreements for single and multi-member LLCs that are reviewed by attorneys.

Step 5: Apply for an EIN (Employer Identification Number)

An EIN is an 9 digit number that the IRS assigns to businesses for identification purposes. It is essential for:

• Opening a business bank account
• Hiring employees
• Filing federal and state tax returns
• Applying for specific business licenses

✅ U.S. Citizens/Residents: Use the IRS EIN Assistant for guidance

🌍 Foreign Founders: Complete Form SS-4 and it to the IRS (4-6 week process) No SSN/ITIN required)

📌 Would you rather not take the risk and just want to get it done? Even without a U.S. Social Security Number, Bizstartz will help you obtain an EIN.

Step 6: Register for State and Local Taxes

Not all businesses need to register for state taxes in North Dakota. However, registration is required if you:

• Sell tangible goods that require you to collect a sales tax.
• Hire employees and require you to withhold state income tax
• Decide to have your LLC taxed as a corporation.

🖥️ Register at TAP (Taxpayer Access Point) ND TAP for online registration

Upon registration, you will receive a Sales and Use Tax Permit or a Withholding Account Number based on your registration.

Step 7: Obtain Local Licenses and Permits

While North Dakota doesn’t have a general statewide business license, particular cities or counties may require a business license based on:

• Your business activities
• Your business location
• Presence in regulated industries (food, construction, childcare, healthcare, etc.)

🔍 For your business license needs, check with the city clerk’s office or county administration.

📌 Bizstartz can assist you with local zoning and licensing requirements.

Step 8: Set Up a Business Bank Account in the U.S.

Separating your business and personal finances is essential for protecting your business’s liability and for bookkeeping.

For a U.S. business bank account, you will need:

• Certificate of Organization
• EIN
• Operating Agreement
• Passport or ID
• U.S. Address (some banks flexible on this)

🌍 For international founders, Bizstartz offers remote bank account setup with no need to travel to the U.S.

Step 9: Submission of Annual Report

As part of maintaining a limited liability company, an Annual Report needs to be submitted to the state every year.

📅 Due Date: November 15 every year

💰 Submission Fee: $50

🖥️ Submission Method: Online Only through the ND FirstStop Portal

It’s necessary to file the Annual Report to confirm the information and avoid administrative dissolution of the LLC.

📌 Bizstartz can manage your yearly filings and keep you compliant every year.

📋 Quick Summary Table

🌍 Setting up an LLC in North Dakota for Non-U.S. Residents

Here’s the best part: you don’t need to be a U.S citizen or a resident to create an LLC in North Dakota.

As a foreign entrepreneur, you will be able to:

• Have complete ownership of the LLC
• Operate the business from your home country
• Have a Registered Agent act as your U.S. contact
• Set up a U.S. business bank account
• Access Stripe, PayPal, Amazon, and other U.S. marketplaces

📌 Bizstartz offers a comprehensive package for non-resident entrepreneurs which includes formation to bank accounts, EINs, compliance, BOI reporting, and more.

🚀 Start Your North Dakota LLC with Bizstartz

For non-resident entrepreneurs, forming an LLC in North Dakota provides a cost-effective and efficient way to enter the U.S. market. Entrepreneurs new to the U.S. will find North Dakota’s business friendly tax policies, ease of market access, and low compliance obstacles for foreign business owners to be a smart and welcoming opportunity.

Let Bizstartz take care of all the details, from the legal part to bank accounts, EINs, compliance and more.

Our Offerings:

• Formation and Registration of LLCs Based in North Dakota
• Applying for EIN (no SSN needed)
• Registered Agent Service
• Operating Agreement Templates
• Assistance in Reporting BOI
• Setting Up Bank Accounts in the US
• Taxation and Bookkeeping Support

📞 Schedule a no-cost consultation with us and set up your North Dakota LLC in a smart, secure and scalable way today.